Big Oil defends profits before irate senators

[Terri]

By H. JOSEF HEBERT
Associated Press
May 22, 2008

WASHINGTON (AP) -- On a day oil prices leaped to unheard-of highs, senators lined up Big Oil's biggest executives and pummeled them with complaints that they're pretending to be ''hapless victims'' while raking in record profits.

''Where is the corporate conscience?'' Sen. Dick Durbin, D-Ill., asked the top executives of the five largest U.S. oil companies.

It's all about economics, came the reply. Supply and demand. The company leaders tried to shift attention from motorists' anger over $4-a-gallon gasoline to a debate over new areas for drilling.

But senators at the Judiciary Committee hearing weren't having any of that. They wanted to press the executives about public anguish over paying $60 or more to fill up a car's gas tank.

More

[Terri]

Pressure Builds on Oil Companies - from Lawmakers, Media and Candidates

Business and Media Institute

Campaign trail talk of a “windfall profits” tax on oil companies wasn’t enough for the Senate Judiciary Committee, which accused oil executives May 21 of manipulating the market.

Democratic senators said they saw a failing market where supply and demand weren’t functioning normally, while oil CEOs refuted the accusations and asked the Senate to allow more domestic energy exploration.

Meanwhile, gas prices are shooting toward $4 and all three presidential candidates are offering their own “solutions.” Both Sens. Barack Obama (D-Ill.) and Hillary Clinton (D-N.Y.) are pushing for billions of dollars in “windfall profits” taxes, but journalists haven’t looked at the obvious flaws in that idea, when the politicians proposing it should know won’t work.

[Terri]

Big Oil executives defend industry, record profits

The Hill

The top executives of some of the world’s largest oil companies, who had been summoned to appear before the Senate Judiciary Committee to explain their “exorbitant profits,” on Wednesday defended their industry and challenged Congress to allow additional oil exploration.

They faced strong criticism from Democratic senators who noted that the companies are making record profits while Americans are hurting at the pump.

“Consumers are angry — and they have every right to be — and the American economy is buckling under the weight of gas prices,” said Sen. Herb Kohl (D-Wis.). “And while consumers and businesses suffer from these price increases, the oil industry seems only to get richer and richer.”

The executives argued that the world market is dictating the cost of oil, saying that Congress should open up new areas for exploration and refrain from punishing the industry for its profits.

[makamends]

"people can't afford to go to work'' because gasoline is costing so much, replied Leahy with sarcasm.

Interesting concept. Looks like we'll need a Gas Stamp program.

[righton]

As far as dumbo Durbin's comment -- where is Congress' conscience?

It is THEIR fault we have such high gas prices - no exploration, clean coal, shale oil, nuclear, wind power, etc. It has been reported that the population of the US has increased 80M since the last refinery was built.

If they could wean themselves from the environnut lobbies and let this country develop its own energy sources, decades ago, then we probably wouldn't be in this position.

I am so sick and tired of the bantum rooster pols pontificating for the TV and microphones, blaming everyone but themselves for the gas situation. Hope the voters in November smarten up and kick their butts out of office.

L&L

[crowell]

Remember that it was Clinton who vetoed expended oil exploration and drilling in Alaska. It was a Republican controlled congress who had the foresite to pass that bill. It was the Democrates lack of vision and cowtowing to the environmentalist lobby which is to blame for that oil not being in our market today.

In part, Big Oil is right about one thing, it is supply and demand which is causing fluxuations in the market price of a barrel of crude.

Doesn't the President or Congress have some emergency powers which would allow them to freeze the market? Better yet, remove Oil as a traded commodity from the American and NY Stock Exchanges.

Congress should have the stock exchanges on the carpet for their part in manipulating stock prices for profit. They are just as much to blame as Big Oil.

[welder4]

I just wish that the oil exec's would have told them why the price is so high it is because of the global warming myth and congress following it to a degree that is sicking. Al Gore is the one person that is responsible for high prices and the oil co's are right, let us drill in Anwr and other places in the USA and we will lower prices . It is a shame on our country that the green peace has duped the entire world on this warming myth 31,000 scientist have said and stated in a petition that the warming is not man made and that Co2 is a beneficial gas to our planet . when we can drill here we will see prices drop, not before . 700 miles there is no trees in Anwr where they want to drill no animals and a few birds fly over once in awhile.

[oldjules]

What are windfall profits. Anyone that understands business know you need to make more when selling $3.00 gas then you did when you sold it for .30 cents or you will go broke.
When you sell something for a dollar and have to replace it with a cost of 2 dollars, it take some great managing.
How about a windfall tax on congress critters?
We could start by eliminating their golden retirement and have them live on SS and what else they can save like the rest of us.
Why should a congressman have a better retirement than a veteran?

[oldjules]

Its like a rocket scientist being questioned by nursing home residents.

[jack virtus]

I wish just one of the oil Executives had the nerves to say "The biggest cause of our energy dependence and high prices are the policys of you idiots in Washington" You have prohibited drilling in vast tracts of federal lands. All of your over zealous environmental rules and regulations make building a refinery in the U.S. nearly impossible, not to mention the EPA mandates us to produce over 50 grades of gasoline. And that is only scratching the surface.